US labor productivity just hit 4.9%, marking the strongest performance in over half a decade—up sharply from 3.3%. What makes this stand out is the accompanying shift in labor cost dynamics: they're either declining or holding steady across sectors. This combination signals potential economic expansion without the inflation pressures that typically accompany growth. For markets closely tied to macro trends, this data point matters. Steady productivity gains paired with controlled labor expenses suggest room for sustained growth momentum. The mix removes one of the traditional headwinds investors have worried about—that growth and rising prices moving in tandem. Whether this holds depends on broader policy and global factors, but the labor market efficiency gains are real.